You finally met with your mortgage broker and have started the process for either your home purchase or refinance. You are excited to finally start the process and then it hits you. This is the first time you have done this and you don't know what to expect going forward. You shouldn't worry though! We are here to explain the entire process to you.
The mortgage process is often overlooked in the real estate industry. It's a process that most people dread due to the amount of documents, signatures, and time it takes to complete. The mortgage process can be turned into a smooth experience for every party involved if you have the knowledge of what the process entails.
What exactly makes up the mortgage process? Here are the markers that we tell our clients when explaining the process:
Initial Consultation: First meeting with the client. Getting to know them and what they want to do for their home financing journey.
Decision Meeting: Second meeting where decisions on what rate and if one qualifies for a loan are made. Any questions before starting the actual process are answered here as well.
Contract Received (Purchase): If one is purchasing a home, this step is completed after the offer has been accepted for the home the clients wants to move into.
Disclosures Signed: Disclosures are sent over to the client for them to sign. Includes a lot of legalese that explains the entire loan process.
Submitted for Conditional Approval: Application/file is started by the underwriter. When conditional approval comes, loan is good to move forward. However, specific conditions need to be completed beforehand.
Appraisal Ordered: Appraisal is ordered to determine the property's value. An appraiser (who has no affiliation with the people involved with the transaction) comes to the property and inspects everything to calculate the current value.
Appraisal Received: Appraisal comes back with the updated value for the property.
Conditional Approval Received: All items are put together to complete conditional approval.
Submitted for Final Approval: The file is submitted to underwriting for final approval. The underwriter checks the file to see if all conditions have been met.
Final Approval Received (CTC): Loan has been approved for either a home purchase or refinance.
Loan Docs Sent to Escrow: Final documents that clients need to sign are submitted to escrow. Escrow is in charge of contacting clients to get those documents signed before funding.
Loan Funded: Loan is funded to the client or lender who is in charge.
For our long form video, Ronnie explains the entire mortgage process starting from the initial consultation all the way to when the loan is funded! Each step is broken down to help you better understand the entire mortgage process. Check out our video to learn more and make sure to view our other long form videos on home financing.